Council begins work on budget cuts

Published 7:00 pm, Thursday, July 24, 2003

During a Thursday evening City Council meeting, the proposed budget was presented to City Council members by Assistant City Administrator Chip VanSteenberg.

The initial budget revealed a $902,600 shortfall in the general fund.

Although a far cry from the most recent projection of $2.1 million, council members were still not sure how they would overcome the remaining amount of money or if they even agreed with the way the shortfall had been reduced.

The shortfall projection was reduced from $2.1 million to just under $1 million by eliminating any pay raises for any city employees for a savings of $420,000.

City officials also suggested moving $300,000 worth of expenses out of the General Fund to the Water and Sewer Fund and cutting the Hazardous Waste Day, which would save $30,000.

A 3-cent increase in property taxes is also proposed, which would generate $530,000 into the General Fund.

The proposed tax hike would increase the current property tax of 41.65 cents per $100 valuation to 44.65 cents, or about a $30 increase in the tax bill for a $100,000 home..

A $1 increase per household, per month in the water rate is also proposed. If approved, the change will bring $120,000 in revenue to fund a meter replacement program.

Toward the end of VanSteenberg's detailed explanation of the budget, City Administrator Craig Lonon illustrated the amount of money needed and how easily the shortfall could be eliminated if the previously rejected workforce reduction plan, which eliminated 20 vacant positions, were approved. But council members weren't buying it.

Instead, they turned their attention to ways to cut more minor costs and increase fees on permits and licenses.

Council member Duke Coon said he would like to see the city do a detailed search for more affordable employee insurance.

According to VanSteenberg, the city is paying $500,000 more in employee insurance this year than last year for its 391 fulltime employees.

Coon also wanted to look into an adjustment in fees and permits for the city, despite the small amount of revenue that would generate.

"If we take care of our pennies, our dollars will be OK," he said.

Councilman Jay Ross Martin said the city should consider projecting sales tax revenue slightly more liberally because of the consistent increase that has occurred in recent months.

But others on the council warned against liberal projections because of how unpredictable sales tax figures are.

No concrete solutions were decided on before council members went into executive session at 10 p.m.

The council approved a series of special meetings and workshops to allow more time to work on the budget. Those meetings have been scheduled to take place in the council chambers of City Hall, located at 300 W. Davis in Conroe at 9 a.m. on Aug. 11, 1 p.m on Aug. 21 and 6:30 p.m. on Aug. 28.